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Home My WebLink About2002-12-16 Water & Sewer Distri NEW HANOVER COUNTY WATER AND SEWER DISTRICT BOOK 2 MINUTES OF REGULAR MEETING, DECEMBER 16, 2002PAGE 765 ASSEMBLY The District Board of Commissioners of the New Hanover County Water and Sewer District met in Regular Session on Monday, December 16, 2002, at 3:05 p.m. in the Assembly Room of the New Hanover County Courthouse, 24 North Third Street, Wilmington, North Carolina. Members present were: Chairman Robert G. Greer; Vice-Chairman Nancy H. Pritchett; District Commissioner Julia Boseman; District Commissioner Ted Davis, Jr.; District Commissioner William A. Caster; County Manager, Allen O’Neal; County Attorney, Wanda M. Copley; and Clerk to the District Board, Lucie F. Harrell. Chairman Greer called the meeting to order. NON-AGENDA ITEMS Chairman Greer announced that time had been reserved for anyone from the public to present an item that was not listed on the Regular Agenda. He requested all persons to limit their remarks to three minutes. No comments were received. APPROVAL OF MINUTES Chairman Greer called for a motion to approve the minutes. Motion: District Commissioner Pritchett MOVED, SECONDED by District Commissioner Boseman, to approve the minutes of the Regular Meeting held on November 25, 2002, as presented by the Clerk to the District Board. Upon vote, the MOTION CARRIED UNANIMOUSLY. STATUS REPORT ON WATER AND SEWER CONSTRUCTION PROJECTS County Engineer Wyatt Blanchard presented a map showing the overall sewer systems and existing projects. He presented the following information on each project: Middle Sound Sewer Project: This project is divided into three divisions, and construction will begin when the paper work has been completed. Division I$ 5,440,212 Division II$ 7,634,731 Division III$ 1,019,080 Engineering/Administrative Cost$ 1,500,000 Projected Total Cost $15,594,023 Construction Schedule Construction Start System Activation Division IJanuary-February 2003April 2004 Division IIJanuary-February 2003July 2004 Division IIIJanuary-February 2003Aug. 2004 NEW HANOVER COUNTY WATER AND SEWER DISTRICT BOOK 2 MINUTES OF REGULAR MEETING, DECEMBER 16, 2002PAGE 766 Kings Grant Sewer Project: This project is divided into three sections and the contractor is ready to begin Section I. Section I$ 2,216,404 Section II$ 2,360,489 Section III$ 3,664,398 Engineering/Administrative Cost$ 2,000,000 Projected Total Cost $10,441,291 Construction Schedule Construction Start System Activation Section IDecember 2002March 2004 Section IIJanuary-February 2003May 2004 Section IIIJanuary-February 2003May 2004 Brookfield/Brierwood Water and Sewer Project: This cost of this project is as follows: Project Cost$1,871,853 Construction will begin in January 2003 and the system will be activated by March 2004. The total cost for the three construction projects is $27,907,167. Currently, the District has over 28,000 water and sewer customers. Once these projects are completed, the number of customers will increase to approximately 31,000, which is larger than many municipalities throughout the State. A map was presented of the water systems located in NorthChase, Walnut Hills, West Bay, Kings Grant and Veterans Park. These systems serve approximately 8,000 customers. The new Water Treatment Plant will be located in the northeastern part of the County near the West Bay Subdivision. The projected cost of the Water Treatment Plant is $14,916,644 with construction beginning October 1, 2003 and completed by July 1, 2005. A chart was presented on the following residential water and sewer tap fees: Sewer Tap Fees (Effective January 1, 2002): Four inch$2,000 Six inch$2,200 After six months of availability: Four inch$2,500Six inch$2,700 Water Tap Fees: 5/8" x 2/4" meter$1,050 1" meter$1,250 NEW HANOVER COUNTY WATER AND SEWER DISTRICT BOOK 2 MINUTES OF REGULAR MEETING, DECEMBER 16, 2002PAGE 767 Development Fees (Residential) Sewer$450 per unit (new construction - specific area)* Water$720 per unit (all construction) *Additional Special Development Fees may apply in some areas. Facility Fee (Impact Fee) Residential: Sewer$0.675 per square foot of floor space $500 minimum and $1,800 maximum Currently, New Hanover County offers a financial assistance program for sewer connections, water connections and plumbing improvements of owner-occupied dwelling units for very low to moderate income households in the form of an interest free loan. All household incomes must be verified through the current HUD schedule to determine eligibility. In concluding the presentation, County Engineer Blanchard advised that the statistics presented did not include the projects being built by developers such Veterans Park, Mayfair and subdivisions in Porters Neck. Finance Director Bruce Shell provided a copy of the economic model listing current and future projects with projected costs. Various assumptions have been made with the overall model to determine the amount of money coming in and going out, debt service payments, and revenue generated from the sales tax. The projects listed will cost $321,000,000, and if these projects are implemented as scheduled, a determination will have to be made on when the District will run out of money. The Kings Grant, Brookfield/Brierfield and Middle Sound projects are already approved and under construction at a total cost of $27,907,167. These projects will be financed through Certificates of Participation that will be sold in March 2003. According to the projected customer base, it is assumed that money can be set aside from collection of impact fees and the escrow fund to pay 50% of the cost to expand the City’s Northside Wastewater Treatment Plant with the remaining 50% used to pay debt service. If the District continues to implement projects on this aggressive schedule, the District will have to dip into the Water and Sewer Fund Balance by FY 2006, and the sales tax contribution will have to be increased. During the past few years, revenue received from the sales tax has been reduced from $5,000,000 to $1,900,000 per year. In concluding the presentation, Finance Director Shell reported that the New Hanover County Water and Sewer District is financially sound; however, when future projects are presented for approval, the District Board will have to consider the financial impact of each project before making a final decision. District Commissioner Caster commented on the negative figures reflected on the spreadsheet regarding expenses and the fund balance by June 30, 2004, and he requested an explanation from Finance Director Shell. NEW HANOVER COUNTY WATER AND SEWER DISTRICT BOOK 2 MINUTES OF REGULAR MEETING, DECEMBER 16, 2002PAGE 768 Finance Director Shell explained that the reason for the figures becoming negative is because of an aggressive water and sewer construction schedule and the reduction in the sales tax transfer to the Water and Sewer District. The purpose of the status report is to show that the projects listed cannot be approved and implemented under the current level of funding received by the Water and Sewer District. After hearing no further comments from the District Board, Chairman Greer expressed appreciation to Finance Director Shell for the informative report. APPROVAL OF REQUEST TO PARTICIPATE IN UPGRADE AND EXPANSION OF THE CANEEL COVE PUMP STATION #30 County Engineer Wyatt Blanchard advised that the District has a pump station which serves the Caneel Cove project off Pine Grove Road. The pump station was originally built in 1984 and needs to be upgraded. Logan Construction and Development, Inc. has offered to upgrade and expand the pump station at a cost of $75,780 to accommodate the company’s new residential project if the District will contribute $16,200 for the upgrade. He requested the Board to authorize the District to participate in the upgrade. After hearing no comments from the District Board, Chairman Greer called for a motion. Motion: District Commissioner Caster MOVED, SECONDED by Vice-Chairman Pritchett, to authorize funding of $16,200 toward the upgrade and expansion of the Caneel Cove Pump Station. Upon vote, the MOTION CARRIED UNANIMOUSLY. ADJOURNMENT Chairman Greer called for a motion to adjourn the meeting. Motion: District Commissioner Caster MOVED, SECONDED by District Commissioner Boseman, to adjourn the meeting. Upon vote, the MOTION CARRIED UNANIMOUSLY. Chairman Greer adjourned the meeting at 3:45 p.m. Respectfully submitted, Lucie F. Harrell Clerk to the District Board